PITTSBURGH — Netherlands-based Philips, which has large operations in the Pittsburgh region, came under scrutiny in recent weeks with the partial termination of a government contract to manufacture ventilators for Covid-19 response and an investigation into whether the company overcharged for the ventilators.
Approaching two weeks after the contract ended, Frans van Houten, CEO at Philips, said he’s still not been given a formal reason from the government for the termination, which he called a “shock.” Houten denied the claims of the investigation, offering a different reasoning.
“We can only guess that it has to do with the amount that has reached the stockpile,” van Houten said.
Van Houten said claims in the investigation stem from “confusion” between a research contract and the contract in question, which was signed in April 2020.
Read more from our news partners at the Pittsburgh Business Times.
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